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112. Monroe works for NASCAR where his responsibilities include maintaining favorable relationships between the
organization and its stakeholders. Monroe is most likely employed in ________.
a.
sales.
b.
advertising.
c.
human resources.
d.
public relations.
e.
digital media marketing.
113. Which of the following is not a public relations tool?
a.
Feature article
b.
Company magazine
c.
News release
d.
Annual report
e.
Product sample
114. Toyota's sponsorship of a major Professional Golf Association tournament would be an example of a(n) ____ tool.
a.
advertising
b.
public relations
c.
sales promotion
d.
publicity
e.
personal selling
115. A major benefit of using event sponsorship is that it
a.
enhances personal selling efforts.
b.
provides excellent support for advertisements.
c.
can provide large amounts of free media coverage.
d.
is cost-free.
e.
neutralizes the effects of unfavorable public relations.
116. Which of the following is the most important consideration when choosing an event to sponsor?
a.
That the product and the event are easily associated.
b.
The length and location of the event.
c.
When the event occurs.
d.
Whether or not the event is a national event.
e.
The specific name of the event.
117. Recently the local television station communicated a news story about the new specialized medical mart opened by
Cleveland Clinic. The story provided information about the various services that the new medical mart would offer and
how to get in touch with the service providers. This story is most likely an example of
a.
Institutional advertising.
b.
Publicity.
c.
Public relations.
d.
Sales promotion.
e.
Direct marketing.
118. Kohl's, a department store featuring clothing and housewares, communicates in news story form about its
organization and its efforts to support local children's hospitals. This information is transmitted through mass media at no
charge and is therefore called
a.
news reporting.
b.
public relations.
c.
mass communications.
d.
free advertising.
e.
publicity.
119. Which of the following is the most commonly used type of publicity-based public relations tool?
a.
News release
b.
Captioned photograph
c.
Feature article
d.
Press conference
e.
Letter to the editor
120. A single page of typewritten copy that has 300 words or less and describes a company event or product is called a
a.
press story.
b.
feature article.
c.
captioned paragraph.
d.
news release.
e.
publicity bulletin.
121. The public relations department at Lowe's Home Improvement submits one page of typewritten copy to national
newspapers and news web sites to announce its one-day, nationwide clean-up-local-parks event. This is an example of a
a.
feature article.
b.
public update.
c.
news release.
d.
media bulletin.
e.
publicity stunt.
122. If a company calls a meeting to announce a major news event, this is known as a
a.
media call.
b.
press conference.
c.
news release.
d.
press release.
e.
public service announcement.
123. To announce its development of a solid fuel titanium rocket for the U.S. missile defense system, Unijet management
feels it needs to get wide media coverage. Under these circumstances, which of the following would be its best
alternative?
a.
Captioned photograph
b.
Feature article
c.
Editorial letters
d.
Television advertisement
e.
Press conference
124. If researchers at Merck Pharmaceuticals develop a cure for prostate cancer, the best way to announce this to the
public and get wide media coverage would be through a
a.
captioned paragraph.
b.
press release.
c.
feature article.
d.
sponsorship.
e.
press conference.
125. Brian is responsible for the promotions and public relations of his firm, which produces rubber tires. A recent
development in technology may change the way in which the rubber for tires is produced, allowing it to be sourced from
the roots of dandelion plants. Brian would like to have a story run on the evening news or in the local newspaper about
this development, but he knows that this story is likely to be rejected by media personnel because the material is
a.
too long.
b.
written at too high a reading level.
c.
submitted by an organization that the media does not like.
d.
not persuasive enough.
e.
not newsworthy.
126. The limitations in using publicity-based public relations tools stem primarily from the fact that
a.
marketers alter the length of publicity releases.
b.
publicity is never properly managed by media personnel.
c.
media personnel consider only unfavorable messages as newsworthy.
d.
it is time-consuming to convince media personnel that the information is newsworthy.
e.
media personnel control the content of the communication.
127. Which of the following is not an advantage of using publicity-based public relations tools?
a.
Control by media personnel of the content and timing of messages
b.
Credibility
c.
Strong news value
d.
Follow-up word-of-mouth communications
e.
A favorable perception of being endorsed by the media
128. A firm can identify changes in public opinion that affect it by conducting
a.
environmental monitoring.
b.
consumer polling.
c.
a consumer jury.
d.
a communications audit.
e.
press conferences.
129. A content analysis of an organization's messages, readability studies, and readership surveys are all tools used to
conduct a(n)
a.
consumer survey.
b.
public relations audit.
c.
environmental audit.
d.
communications audit.
e.
social audit.
130. Home Depot is interested in knowing how its efforts to act in a socially responsible manner through its Habitat for
Humanity and disaster relief efforts have affected stakeholders' views of the company. Home Depot should conduct a(n)
a.
social audit.
b.
publicity audit.
c.
environmental audit.
d.
communications audit.
e.
environmental impact study.
131. One way for a company to measure the effectiveness of its publicity-based public relations efforts is to
a.
tabulate the equivalent in advertising dollars if the time and space were purchased.
b.
ask for return of reply cards.
c.
calculate market share increase.
d.
count the number of exposures in the media.
e.
conduct an environmental audit of media alternatives.
132. In many instances the most appropriate way for a firm to cope with an event that leads to negative public relations is
to
a.
discourage news coverage of the event.
b.
deny that the event occurred.
c.
facilitate news coverage of the event.
d.
hire a public relations firm.
e.
refrain from publicity that reports the event.
133. Scenario 17.1
Use the following to answer the questions.
The Toyota Corporation is developing its promotional plan for the coming year and is considering several types of
advertising to communicate its messages. Toyota will likely advertise its vehicle, the Venza, on TV, on its website, in
major national magazines, and through Facebook. It is possible that the ads could focus on the features of the Venza and
its most likely competitor, the Ford Edge. Other forms of advertising that can be considered are ads that feature all of the
Toyota brands in a single ad, while mentioning only the Toyota brand and its company's strengths. Finally, Toyota will
probably continue to advertise updates of its cash cow brands, the Camry and the hybrid versions of its SUVs.
Refer to Scenario 17.1. Toyota's television advertisements for the Venza are examples of _______.
a.
publicity
b.
institutional advertising
c.
product advertising
d.
comparative advertising
e.
pioneer advertising
134. Scenario 17.1
Use the following to answer the questions.
The Toyota Corporation is developing its promotional plan for the coming year and is considering several types of
advertising to communicate its messages. Toyota will likely advertise its vehicle, the Venza, on TV, on its website, in
major national magazines, and through Facebook. It is possible that the ads could focus on the features of the Venza and
its most likely competitor, the Ford Edge. Other forms of advertising that can be considered are ads that feature all of the
Toyota brands in a single ad, while mentioning only the Toyota brand and its company's strengths. Finally, Toyota will
probably continue to advertise updates of its cash cow brands, the Camry and the hybrid versions of its SUVs.
Refer to Scenario 17.1. If the ads include both the Venza and the Ford Edge, they would be examples of
a.
institutional advertising.
b.
public relations.
c.
product advertising.
d.
comparative advertising.
e.
competitive advertising.
135. Scenario 17.1
Use the following to answer the questions.
The Toyota Corporation is developing its promotional plan for the coming year and is considering several types of
advertising to communicate its messages. Toyota will likely advertise its vehicle, the Venza, on TV, on its website, in
major national magazines, and through Facebook. It is possible that the ads could focus on the features of the Venza and
its most likely competitor, the Ford Edge. Other forms of advertising that can be considered are ads that feature all of the
Toyota brands in a single ad, while mentioning only the Toyota brand and its company's strengths. Finally, Toyota will
probably continue to advertise updates of its cash cow brands, the Camry and the hybrid versions of its SUVs.
Refer to Scenario 17.1. Advertisements such as the one proposed above for the Camry and hybrid SUVs, are most likely
an example of
a.
product advertising.
b.
comparative advertising.
c.
competitive advertising.
d.
institutional advertising.
e.
reminder advertising.
136. Scenario 17.1
Use the following to answer the questions.
The Toyota Corporation is developing its promotional plan for the coming year and is considering several types of
advertising to communicate its messages. Toyota will likely advertise its vehicle, the Venza, on TV, on its website, in
major national magazines, and through Facebook. It is possible that the ads could focus on the features of the Venza and
its most likely competitor, the Ford Edge. Other forms of advertising that can be considered are ads that feature all of the
Toyota brands in a single ad, while mentioning only the Toyota brand and its company's strengths. Finally, Toyota will
probably continue to advertise updates of its cash cow brands, the Camry and the hybrid versions of its SUVs.
Refer to Scenario 17.1. The advertising mentioned above in which Toyota features all brands of the company would be an
example of
a.
competitive advertising.
b.
institutional advertising.
c.
comparative advertising.
d.
pioneer advertising.
e.
product advertising.
137. Scenario 17.2
Use the following to answer the questions.
The State Farm Group includes several companies. Probably the most well-known company in the group is the State Farm
Insurance company, the largest auto and home insurer in the United States. State Farm Insurance provides protection for
approximately 78 million policies on auto, fire, life, and health services. It is also a leading insurer of homes and autos in
Canada. Another company in the State Farm group is the State Farm Bank, which was opened in 2000, beginning State
Farm's entry into the financial services field. However, the State Farm Bank is not a traditional bank, in that it has no
branch offices and its services are provided through State Farm agents, a call center, the mail, and on the Internet. It
currently serves over 1.9 million bank accounts.
Refer to Scenario 17.2. In 2008, Cal Ripken, Jr. and State Farm teamed up to promote State Farm's national teen driver
safety program. The marketing division at State Farm produced a one-page document that described the partnership,
which was then published in several national newspapers and on the Internet. The document from State Farm is an
example of ____, while the publication in the newspapers is an example of ____.
a.
public relations; publicity
b.
public relations; a news release
c.
publicity; advocacy advertising
d.
a news release; publicity
e.
publicity; a news release
138. Scenario 17.2
Use the following to answer the questions.
The State Farm Group includes several companies. Probably the most well-known company in the group is the State Farm
Insurance company, the largest auto and home insurer in the United States. State Farm Insurance provides protection for
approximately 78 million policies on auto, fire, life, and health services. It is also a leading insurer of homes and autos in
Canada. Another company in the State Farm group is the State Farm Bank, which was opened in 2000, beginning State
Farm's entry into the financial services field. However, the State Farm Bank is not a traditional bank, in that it has no
branch offices and its services are provided through State Farm agents, a call center, the mail, and on the Internet. It
currently serves over 1.9 million bank accounts.
Refer to Scenario 17.2. When deciding on its advertising allocation for the coming year, State Farm Insurance could
choose to spend the same amount as Safe Auto, another auto insurance company, or it could allocate an amount that is
10% of last year’s premiums. If State Farm uses the same amount as Safe Auto, this method of advertising appropriation
is known as the ____ approach; if State Farm uses the amount based on last year’s premiums, the method would be _____.
a.
competition-matching; percent-of-sales
b.
arbitrary; competition-matching
c.
competition-matching; objective-and-task
d.
arbitrary; objective-and-task
e.
objective-and-task; percent-of-sales
139. Scenario 17.2
Use the following to answer the questions.
The State Farm Group includes several companies. Probably the most well-known company in the group is the State Farm
Insurance company, the largest auto and home insurer in the United States. State Farm Insurance provides protection for
approximately 78 million policies on auto, fire, life, and health services. It is also a leading insurer of homes and autos in
Canada. Another company in the State Farm group is the State Farm Bank, which was opened in 2000, beginning State
Farm's entry into the financial services field. However, the State Farm Bank is not a traditional bank, in that it has no
branch offices and its services are provided through State Farm agents, a call center, the mail, and on the Internet. It
currently serves over 1.9 million bank accounts.
Refer to Scenario 17.2. If State Farm were to decide that its previous method of appropriating the advertising budget was
ineffective, it could decide to allocate 2 percent of its total annual sales to advertising. However, one problem with this
method is that
a.
it makes the bookkeeping too difficult.
b.
it is tied too closely to sales forecasts.
c.
a sales decline leads to an increase in the advertising appropriation.
d.
a drop in sales would cause a drop in the advertising budget.
e.
competitors may have different advertising objectives.
140. Scenario 17.2
Use the following to answer the questions.
The State Farm Group includes several companies. Probably the most well-known company in the group is the State Farm
Insurance company, the largest auto and home insurer in the United States. State Farm Insurance provides protection for
approximately 78 million policies on auto, fire, life, and health services. It is also a leading insurer of homes and autos in
Canada. Another company in the State Farm group is the State Farm Bank, which was opened in 2000, beginning State
Farm's entry into the financial services field. However, the State Farm Bank is not a traditional bank, in that it has no
branch offices and its services are provided through State Farm agents, a call center, the mail, and on the Internet. It
currently serves over 1.9 million bank accounts.
Refer to Scenario 17.2. If State Farm Bank decided that it wanted to increase its number of bank customers by 10% in the
coming year, it would most likely use the ____ approach to advertising allocation.
a.
arbitrary
b.
competition-matching
c.
objective-and-task
d.
percent-of-sales
e.
percent-of-customer
141. Advertising is paid nonpersonal communication transmitted through mass media.
a.
True
b.
False
142. Business organizations are the only major users of advertising.
a.
True
b.
False
143. Institutional advertising and promotional advertising are the two basic categories of advertising.
a.
True
b.
False
144. Advertisements that promote goods and services are called advocacy advertisements.
a.
True
b.
False
145. Product advertising is often used to stimulate demand directly.
a.
True
b.
False
146. If a commercial advertisement compares one brand of laundry detergent to another brand, this is a type of
competitive advertising.
a.
True
b.
False
147. If a restaurant, known for its delicious food and fun entertainment, does not serve alcohol, it is displaying advocacy
advertising.
a.
True
b.
False
148. In a comparative advertisement, advertisers point out that their brand has characteristics that are superior to those of
competing brands, but they do not actually mention the brand names of competitors.
a.
True
b.
False
149. Comparative advertisements mention the actual names of competing brands.
a.
True
b.
False
150. Reinforcement advertising tells current users how to get the most satisfaction from the brand they have chosen.
a.
True
b.
False
151. Reminder advertising is not applicable to new products.
a.
True
b.
False
152. Almost all advertising campaigns are aimed at producing immediate sales.
a.
True
b.
False
153. Advertising objectives should be stated in clear, precise, and measurable terms.
a.
True
b.
False
